As Brexit negotiations continue to crash and burn, retailers are suffering the referendum’s after effects.

Today, it was the turn of Card Factory. Its clever business model – it makes 98% of the cards it sells – and value price proposition have seen it best rival Clintons after turning out quarter after quarter of market-smashing results.

Today, that came to an end. The business is still highly profitable and sales are rising, but profits have begun to slip.

Part of that is the business’ programme of investment, but much is due to the rising costs of the national living wage and currency headwinds.

If those two factors can eat into Card Factory’s profits, they can certainly hurt less resilient businesses.

And then there’s inflation. As Retail Week found out, it’s going to get worse before it gets better – for both consumers and retailers.

Quote of the day

“The directors have a reasonable expectation that the company has adequate resources to continue in existence for the foreseeable future”

– Blue Inc’s less than encouraging forward-looking statement in its latest financial accounts

Today in numbers


The gender pay gap between male and female managers working in retail


Argos’ position in Retail Week’s multichannel retailer league table

Tomorrow’s agenda

Boohoo posts its interim results tomorrow while Hotel Chocolat reports its prelims.

Becky Waller-Davies, reporter